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Unanswered: how can I catalog NODE for client and server in one box?

Hi All,
I am using db2v7.2 and aix 5.2,
I am trying to catalog NODE for client and server in one box, what is the command? I found the command:
db2 catalog tcpip NODE mynode remote 127.0.0.1 server xxxxxx is it correct?
what does 127.0.0.1 mean , it seems I should use LOCAL .